Paoli is a town within Paoli Township and the county seat of Orange County, in the U.S. state of Indiana. The population was 3,677 at the 2010 census. Paoli was laid out and platted in 1816. It was named for Pasquale Paoli Ash, the son of North Carolina governor Samuel Ashe. A post office has been in operation at Paoli since 1817.